you investigate it thoroughly. that is exactly what they are doing. they are causing so they can look at it more carefully. reporter: thank you. it is great to see you back at the podium, dr. fauci. given the impact of patients were all women between the ages of 18 and 48, should women under 50 b excluded from getting the j&j vaccine? dr. fauci: the question you are asking gets back to several of the questions here. that is the reason why the cdc and the fda want to take a look at this and say, are there some categories now where people outside of the category down have any of the factors so it would be ok to go on? it is entirely conceivable, making new predictions, that there may be some restrictions. we don't know that now. that is the reason why they are working very hard to answer the question you are asking. reporter: what is your medical advice for people who have recently received the j&j

vaccine? and may be concerned about this? dr. fauci: if someone recently within days, i would tell them to first of all, don't get an anxiety reaction because remember, it is less than one in a million. however, having said that,. pay attention. . . do you have symptoms? headache, shortness of breath, chest discomfort, do you have anything that resembles a neurological syndrome? obviously, if you have something as serious as a seizure, that is pretty clear. but the manifestations of this are that. headache is the common component, because the sinus thrombosis that they have is the draining of the blood in the brain. it will cause enough symptomatology to make you notice it. just tell people to watch out for not feeling very well. reporter: one for jeff. officials from different states told us this morning that they were caught off guard by this announcement.

they were ready to put shots into people's arms and had to scramble. can you explain the chain of communication? when and how did you notify states that they might have to pause? jeff: as i said, we didn't know about anything in terms of the announcement until last night. we didn't even know the content of the announcement until this morning. as soon as we got that, our team farmed out and started contacting folks to make sure everyone knew that that was announced by the fda and cdc. tuesday is the day i have the regular governors call. so that was fortunate that that was at 11:00 a.m. we had all of the governors already lined up with their teams. we had doctors fauci and dr. lu will and ski join the call. the team will continue to support the statewide effort, the federal channels, the community health centers, to make the adjustments. i think the message got out clearly and quickly. there was no heads up here. the announcement was made this morning. reporter: thank you.

reporter: just a few questions. you may have answered this. do we have a timeline in terms of how long this is? are we talking days in nine. -- might get put back on? a second one, i understand what you are saying on the macro level. when you talk to local officials, j&j shots, because it is one-shot, was considered a crucial component in rural areas. how does that not affect the timeline that you guys are on in terms of getting shots in arms? jeff: during one of -- reporter: dr. fauci: during one of the questions of the cdc, the question was yours. i don't know what they will be doing. what i heard from the previous press discussion is that it will be more like days to weeks rather than we two months. jeff: we have plenty of supply and vehicles for delivering that supply, whether it is through the federal pharmacy channel, whether it is mobile units,

community health centers, and all of those are equipped to deliver the moderna and pfizer vaccine. we will make sure that those units continue to grow in number. because you are right. we need to reach people where they are in the mobile units in the community health centers are particularly essential for those. they have been receiving moderna and pfizer doses. reporter: you just swap out the vaccine, if there was a mass vaccination center. jeff: i turn on and pfizer vaccines. it is important people come down -- come back for their second dose. but all of our units, all of our delivery channels are equipped to deliver both pfizer and madrona. reporter: how does this not contribute to the -- that is the very area where the hesitancy is the most predominant based on what you guys have seen. do you have to change your message?

do you have to do something different to address hesitancy? jeff: i think we need to continue to be transparent about what the science is telling us. as dr. fauci said, there has been tens of millions of doses of pfizer and moderna administered over the last several months, millions of people in the u.s. and around the world have been safely vaccinated. i think it is important that we have here at the fda, and the fda is the gold standard for ensuring safety and effectiveness of the vaccines. today's action is clear evidence that they are taking every step necessary to ensure the american people have clear and transparent information about the safety and effectiveness of these vaccines. the bottom line is the vaccine, moderna and pfizer that are being administered, are clearly safe and are saving lives, and every american should get vaccinated when it is their turn. reporter: is j&j production going to continue during this

pause? secondly, is the biden administration considering ordering more doses of pfizer, madrona -- moderna, in case this problem with j&j becomes prolonged? jeff: the j&j production issues in baltimore, obviously, completely separate set of issues. those are being worked out through the fda process with the company. the production of those vaccines begin if and when the fda authorizes that facility. the second question was, we really have thought of this as a wartime effort from the beginning. which is why we purchased excess supply, that we would be ready for any contingency. we will continue to look at every possibility in terms of making sure we have enough supply for the american people. reporter: just to clarify on the j&j production, not related to the baltimore plant but overall, is not going to pause while the on administering doses occurs? or is the production going to continue?

jeff: the production is centered around the baltimore facility. the vast production at the baltimore facility. reporter: i want to ask you very directly, are you ruling out the possibility that the vaccine could be removed from the market? are you expecting it to be re-allowed? dr. fauci: you know, i think it would be premature to comment on that. that is the reason why the pause was done. so that they could take a good look at it very carefully. i would want -- i would not want to speculate as to what would happen. often when you see things like this, but you pause and come back, whether or not that happens now, i can't guarantee it. but i can tell you that is exactly what the cdc and fda people are going to be deciding on and looking at carefully. reporter: on the outreach question, this is the problem

that you have been struggling with, the vaccine hesitancy. this obviously is a setback. what do you have to ramp up into for the wartime effort to really ensure that this message gets out there? do you personally go to places like mississippi where the vaccine vaccination rate is low? jeff: let me answer your first question. consistent with it being a wartime effort, we plan for different scenarios. so we have enough supply of moderna and pfizer to hit the targets that we have sent, the 200 million shots in 100 days. and to head toward the fourth of july that we have talked about as that. part of that is making sure that when it is the americans turned to get vaccinated, they get vaccinated and we need to continue to build confidence

that is done at the community level. people are trusting of their local doctors, their faith leaders, their neighbors, which is why it is important when people get vaccinated, they not only get themselves vaccinated but they spread the word about the safety and effectiveness of the vaccines. reporter: one of the goals is the hope that there will be enough supply on hand for the country by the end of may. is not operative now with the wake of the pause? it is surprising to learn that you have learned about this this morning. do you wish you had heard it sooner? jeff: i learned about it last night that there would be announcement. not the specifics. that is to the science. we want the science agencies to lead with science. there is no reason for us to be involved in any of the scientific decisions. we bring nothing to the table. that is the fda's role. that is the cdc's role. they are led by terrific leaders with great pains to do the science. this administration will be led

by science. as to your first question, we believe there is enough to vaccinate -- the vaccine in the system for all americans who want to get vaccinated by may 31 to do so. reporter: i feel like we are dancing around the hesitancy question. i'm going to ask you directly. do you think the announcement of this pause will increase or decrease vaccine hesitancy? jeff: hesitancy amongst a group of people is a challenge. we need to be addressing it and we are as i talked about, by going to meet people where they are. to follow all that we have learned about who people trust. their local doctor, their nurse, their faith leader. i think there is tremendous track records, as dr. fauci has talked about, with tens of millions of doses of pfizer and moderna. the fda, acting the way they did today, shows that they are

upholding the gold standard. i think that should reassure the public that they will be very diligent and conservative and how they approach the vaccines. reporter: so because the fda, the tripwire was triggered, that should give americans more confidence in the overall vaccination plan? jeff: certainly around how safety and efficacy are being monitored by the gold standard folks at the fda. reporter: we will do a few more and we will let them go back. reporter: you said the fta is the gold standard for ensuring the safety of the vaccine. to what extent does today's news add urgency to the effort of getting a permanent nominee confirmed to head the fda? clearly it is always an important post. but how much of a following does this news -- jeff: i have no personnel announcement to make today. the fda has extraordinary group of scientists, experts, that leave these type of efforts. reporter: with a permanent --

how good would a permanent director be in those efforts? jeff: i think the fda does an extraordinary job. and the teams that are addressing these issues are experienced teams. in fact, the acting directors are very experienced. i think the experience of the fda and the expertise of the fda is the gold standard. reporter: are there any immediate plans to accommodate the states because of the pause? can you guarantee every person in a reservation can get rescheduled in a matter of days? jeff: i think there are already, in certain locations, people who are scheduled for today, already rescheduled. we will do anything we can to support the states on the logistics of rescheduling. and the same time, the most important thing is that the supply -- they supply this to continue to vaccinate 3 million americans a day.

there's enough supply to accelerate that. there is tens of millions of doses in the system. as i said today, we announced 28 million more, moderna and pfizer doses, available to be ordered this week. reporter: dr. fauci, you said there was -- this question might be asking you to state the obvious. can you verify their means there are no devonian's of blood clot symptoms in the recipients of those vaccines? dr. fauci: there have been no serious events to call attention to anything that would relate to a pause. reporter: why would it -- why would it be for one vaccine and nothing other two? dr. fauci: i think when you examine everything in general, the fact that you have 120 million doses, individuals who have received at least one dose,

and as you subtract out of that 121 million, 6.85, you were talking about 114 or so million individuals that have received one dose. no negative red flag signals. that tells you you are dealing with a really safe vaccine. i think apropos of several of the questions that people ask about hesitancy, when you want to talk about safety, this is an extraordinary safety record the others have. the fact that a pause was done, i think just as a testimony to how seriously we take safety, and why we have an fda and cdc that looks at this very carefully and hopefully will resolve it pretty soon within days to weeks, apropos of your question. i think it is a strong argument for safety, actually. >> thank you, dr. fauci. thank you, jeff. jeff: thank you, everybody. >> always welcome.

ok. i know there is a lot going on today, and you also have a call time. so we will try to get through as much as we possibly can. i did want to give you all a couple of updates. obviously the president met yesterday with a bipartisan group of members, who work on committees of jurisdiction. i can talk more about that. i also wanted to give you an update on the work of our jobs cabinet which will be central to our efforts and especially in this. of time. a lot of these members are going to go back. they will work with their staff, with each other, to see what the path forward is. cabinet secretary from our jobs cabinet have made 27 calls to members including republicans, when they connected of course, our legislative affairs team has made -- >> there you see jen psaki talking to the white has press corps, following a news conference on the pause in using

johnson & johnson's single-dose covid-19 vaccine. we heard a lot of information from anthony fauci there, saying this will be days to weeks of a pause, rather than weeks to months. there were not a lot of direct answers as to the vaccine hesitancy. kind of bad pr that this puts out there. here to discuss is deborah fuller, a university of washington school of medicine microbiology professor. let's talk about the science behind the issues here, dr. fuller. how do you see the possibility of a link between the vaccines, and i we have seen it in johnson & johnson as well as astrazeneca , and potentially fatal blood clots? dr. fuller: as we just heard committees are very rare situations, less than one in a million. i think it is striking for both j&j and astrazeneca, this

element -- the similarities in terms of the demographics being young women. and the frequency being very rare. less than one in a million. what has to happen next is really to study and understand what might be causing that. to what extent that is related to the vaccine? one of the mechanisms, what are the risk factors? i think this is really going to be an important step forward in terms of understanding how the vaccines work, and ensuring we are giving the safest vaccines possible. >> what could the issue be? what makes young women different in their reception of vaccine like this rather than older men? dr. fuller: young women are very different from alderman. in many respects.

so there is a lot of different biology that goes on in a woman's body that is very different from a man. and a younger woman versus an older woman. so i think they are really -- i think they will get to the bottom of this. that is one of the things that we should think about, is the fact that both j&j and astrazeneca are two vaccines that have been in the sink class. they are based on a virus to carry the vaccine into our bodies. so they can put their heads together and look at that, and look at these cases, i think there is a lot of confidence that they will figure it out and understand precisely what might be the risk factor associated with that. in doing that, they will be able to come back out, reroll out those vaccines with new recommendations as to who might be a potential risk for this rare event. >> barring a specific sighting,

for example, there has been talk, although in some ways it has been dismissed, that birth control could have something to do with this link. in any case, barring some specific finding like that, is it safe to say that we will see a reintroduction of these vaccines for people who simply are not young women? say, no women under the age of 50 should take this vaccine, they should opt for another? dr. fuller: that is one possibility. i think they will have to look at the data, at the science. and make a judgment based on what the data ends up telling them. this is -- with vaccines, this is not necessarily something we should be entirely surprised about. there are other vaccines in the past where some rare adverse events would occur, and they study that in they determine hey, this particular class of people are going to be at higher risk. for example, we have a flu

vaccine and they grew up in eggs and they end up founding a -- finding out that people with egg allergies were at higher risk to getting anaphylaxis. so they are recommended not to take that vaccine. and instead they are told to take a different type of vaccine. i think with covid-19 and particularly, the wealth of vaccines we have here, mrna vaccines which have been shown to be very safe as well as other vaccines that are now in phase three trials and will be rolled out, that we have a lot of different vaccines to choose from. so we find a situation where there is a very rare risk, especially with a particular demographic or a precondition, people to be able to take and to be able to vaccinate everyone as safely as possible. >> there is obviously a lot of

hope that we can get this j&j vaccine back in there, figure out what the problems are and then we will still have these three vaccines and may be more to come to fight this pandemic. the variants are the next problem though. maybe even the first problem. dr. fuller, i wonder what you see in terms of the efficacy of all of these vaccines against different variants? dr. fuller: we need all of these vaccines. what we have seen so far in terms of their efficacy is quite promising. despite the fact that some of the variants like that be 1351 that was originally identified in south africa, we are seeing a reduction in terms of the capability antibodies responses to neutralize the virus. we are seeing these vaccines are very effective in protecting against severe disease, against hospitalizations and against

death. that really is promising. with that said, we still need all of these vaccines, we are sort of in this battle between a surge in new variants, and we need a surge in vaccinations to combat that. we need as many vaccines out there as possible. j&j vaccine, as well as astrazeneca, are really important to this fight. because they can be shipped out warmer temperatures to all parts of the world, the j&j vaccine works with a single shot. they have a hope to be able to get more people vaccinated. that is really the solution for shutting down the emergency of these variants to build up immunity worldwide. as long as the virus is replicating somewhere, there's always going to be a risk of a new variant coming out and potentially reducing efficacy with our current vaccines. >> deborah fuller, thank you so much for joining us today. really appreciate your insight. deborah fuller from the

university of washington school of medicine. let's get to the stock of the hour. novavax may be the beneficiary, as the fda and cdc delay the shots from j&j. at least for a few days. over blood clotting fears. novavax could see a faster approval for its shots, with a 100 million does contract in the u.s. already set. ritika gupta is here with a look. britta: a mixed picture or mixed reaction from some of those vaccine makers off the back of this j&j news. if we look at this board, we are seeing astrazeneca down. that is not surprising. it has its own blood clot issues. to the upside, novavax, our stock of the hour, having its best day in over two months. they are developing a two does vaccine. it is up on the idea that their approval for the vaccine could be pushed forward. this news is outweighing some of more negative news on the side

of its production, which seems to have hit a bit of a glitch. and did want to produce 150 million doses daily by the middle of this year. it is having to push that back to the third quarter. if this does get improved, it could be a bilge -- a real game changer. it has effective results in the u.k. trial, particularly the variant that was developed there. it has helped out by government under your 1.6 billion dollars to be exact. we can see this chart, you can see the opposite end of the spectrum. moderna getting the most. novavax, nicely placed in the middle. matt: thank. medical group to with a look at your stock -- read ago grouped with your stock of the hour. bitcoins soars to an all-time high. just one day ahead of the highly anticipated coinbase listing. we are seeing bitcoin up, for we

were seeing bitcoin up over $63,000. i will pull it up myself real quick and take a look. the question is, is interest in coinbase that is boosting bitcoin, we were asking yesterday, if coinbase would suck some flows out of the crypto space? it is pretty fascinating to watch. we will dig into the details with president and founder of the chamber of digital commerce. this is bloomberg. ♪

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♪ mark: i am mark crumpton with first word news. six u.s. women between 18 and 48

who received the johnson & johnson covid vaccine developed blood clots. this prompted federal health agencies to call for a pause in the distribution. >> of the clots in the united states one case was fatal and one patient is a critical condition. while we review the available data out of an abundance of caution the fda and cdc are recommending a pause the use of this vaccine in the u.s. mark: the j&j problem is likely to cause concern around the world about vaccines. this after similar issues with the astrazeneca shot. nearly 7 million doses of the j&j shot have been given. the u.k. has hit its target to offer a first coronavirus vaccine to all over 50 edit schedule. that is a significant boost to boris johnson's plan to unlock more of the economy. the national health service invited people aged 45 and older

to book vaccinations online. near minneapolis a second night of protest following the fatal shooting of a black man by a police officer. the police chief said the officer meant to fire a taser and not a handgun as the man struggled with other police. hundreds of protesters faced off against police last night. they would not disperse police used tear gas and flash bang grenades. global news 24 hours a day on air and on quicktake by bloomberg. powered by more then 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ >> welcome to bloomberg markets. matt: i am matt miller.

we welcome audiences every day at this hour. here are the top stories we are following from around the world. u.s. consumer prices on the rise climbing by the most nearly nine years. we break down the latest on inflation with barbara ann bernard of wincrest capital. plus, big bank earnings kickoff tomorrow. we speak to wells fargo analyst mike mayo for his earnings watchlist. and coinbase is set to go public with a valuation of $100 billion. we talk about the increasing acceptance of cryptocurrencies with president of the chamber of digital commerce. amber? amber: first ahead of that let's check out the market action. little subdued on the s&p 500. on a day when we got the hot

inflation picture that typically benefits financials and energy, not really panning out. it is about the tech stocks. you are also seeing a rally in the bond market, particularly the 30 years. we got through a treasury action that had healthy demand. the demand came down even more. but this fails in comparison to the gains we are seeing right now in the cryptocurrency. bitcoin is pumping to get another record high. this ahead of the public debut of one of the biggest exchanges out there of cryptocurrency, coinbase. they are expected to have a $100 . valuation. let's bring in perianne boring. we were talking about this yesterday and thought maybe coinbase will take away from the appetite to invest in the

cryptocurrency. but here we are ahead of the big debut and bitcoin is surging to record highs. perianne: bitcoin is up 4.5% over the past 24 hours and the global crypto market cap of all cryptocurrency surpassed $2.1 trillion and that is a 3.2% increase over the past day. we are already seeing the coinbase affect in the market. but what is really interesting to understand about the role coinbase is playing today is that one, bitcoin has been the best performing asset 10 out of the past 12 years. coinbase's performance tracks closely to bitcoin's performance. there is pent-up demand for exposure to bitcoin because they

re are very few approved products they can buy. financial and visors have historically not allowed investment in digital assets directly and we have no crypto exchange traded products in the market in the u.s. at all. what investors are doing to get exposure is they have to invest indirectly in the stocks and public companies that own crypto or have operations in that space. coinbase represents the first public pure crypto company that will be an improved way to have direct exposure. all of the excitement about tomorrow's direct listing. matt: what can coinbase become? is this going to be bank of the future? perianne: what is very interesting is that anyone can go and buy cryptocurrencies directly. you can go to an exchange or trading platform like coinbase,

robinhood, paypal, square, gemini. there are plenty of platforms you can buy cryptocurrency indirectly. but there is tens of trillions of dollars that are managed through financial advisory firms and these brokerage firms are not allowing direct access to bitcoin or other cryptocurrency. but what we saw in coinbase's first quarter reports last week is they have 56 million active accounts. 56 million people are not investing through their brokerage to get exposure to digital assets. that is a change in the way people are investing and that is why we are seeing bitcoin and digital assets emerge as its own asset class. coinbase with its $100 billion valuation are comparable in size to goldman sachs, target, ibm,

general electric. this industry has very much a rise in the institutional way. amber: for coinbase, does it matter if bitcoin continues to move higher or is it important that cryptocurrencies remain an asset class because as long as there is trading, whether it is up or down, that is what matters to an exchange like coinbase? perianne: coinbase's business is allowing people -- giving them a platform to buy and sell cryptocurrencies. it's performance tracks very closely to bitcoin's performance. another thing that was really interesting that we saw last week out of coinbase's earning report that was surprising was that coinbase has over 11% of

all crypto assets. that is huge. they are tightly correlated to the crypto market. matt: what other coins do you see as the most interesting? i have loved following the bitcoin community from the beginning and there was a long time when i tried to live on bitcoin alone. it is very difficult to do transactions with bitcoin and it is not really -- it doesn't seem to have been designed for that purpose. are there other cryptocurrencies you think are better for transactional use? perianne: absolutely. there are over 3000 cryptocurrencies in existence today. the current market cap is $3.1 trillion and this is a store of value, not medium of exchange. it is not used as a transaction layer.

there are other types of cryptocurrencies that are going to serve other purposes like the transaction layer. like, usgc and others. others will serve as a smart contract layers. but it is really too soon to know who the winners or what protocols are going to have the highest market cap. when it comes to store of value we know the winner is bitcoin. when it comes to the transaction layer and smart contract layer those are still emerging. amber: perianne boring, thank you for all your time. perianne boring, head of the digital chamber -- chamber of digital commerce i should say. breaking news to bring you up to speed on on a day we are talking about potential risk around johnson & johnson.

issues flaring up with astrazeneca. canada reporting the first canadian case of blood clots after the astrazeneca vaccine. the health agency in canada saying the person is now at home recovering so it is not a fatal case. the agency is reiterating that blood clots with astrazeneca are very rare, but certainly a day of troubling news when it comes to blood clots and vaccines. johnson & johnson this morning and canada reporting the first incident of a blood clot using the astrazeneca vaccine. we are going to take a quick break. when we come back we talk about the impact of the inflation rating we got this morning on your portfolio. stay with us. this is bloomberg. ♪

♪ matt: this is "bloomberg markets " and i am matt carper. we have year on year pricing increases but the market reaction to the data shows investors are betting higher rise in inflation that will not be enough to slow them down. joining us to break down the numbers is barbara ann bernard from wincrest capital. thank you for joining us. what was your initial take on the numbers that we saw in the way the market reacted? barbara: i really focus on inflation because it is the invisible tax. they were higher than expected. not higher than i expected, but higher than the market expected.

the market had a muted reaction because the fed keeps telling us there is nothing to see here. in my opinion it is not transitory and it is the trajectory that matters. in addition to monetary and fiscal reasons as to why we should be worried about inflation you also have this groundswell of esg which no one is talking about being inflationary and it is. amber: you kind of highlight inflation is not a destination, it's a journey. while we talk about these transitory base effect its seems like you are putting more emphasis on structural increases the prices whether it is coming in the form of corporate taxes or to your point, greater and greater global pricing on carbon. is that your focus when you're talking about the permanent effect of price increases? barbara: absolutely. i think that is the

underreported risk. take something like the energy transition. it is hugely contingent on copper and nickel both of which are scarce. both of which if we are to meet our 2025 or 2030 reduction goals will be in deficit. you take a scarce resource and put exponential demand for them and that is highly inflationary. you then look at what are these governments doing? china has been focused on this a long time. the u.s. is desperately trying to repair relations. this is the one thing they agree on, they are serious about the environment. last week canada made a constitutional to apply a carbon tax. you can look at shipping, meat, steel, any of these things that have had huge price runs. but if you were to tax them for the external, they could be higher. who was going to pay for this? the consumer said they are

willing to pay more for sustainable goods. this is going to show up in the cti whether it is solar panels, ev cars. you are already seeing it but i think the train has left the station. just lastly, you cannot have inflation without wages. if you look at wages, biden wants to increase minimum wage. that is really sticky inflation. that is the "g" in esg. big brother is your consumer and they are self-publishing. matt: absolutely. i was talking today to a guy that runs a bunch of burger chains, fat burger, johnny rocket, elevation burger -- which is delicious -- and he cannot get anybody to come to work. they get paid so much not to work he cannot get them into his

stores behind the registers. if he does, he is going to have to raise prices but he's already looking at price increases on the ingredients he brings in. the supply chain inflation is so strong he cannot keep the cost of elevation burger down. i wanted to ask about your portfolio. what are you doing in the face of this inflation? barbara: there are clear winners and losers. you want to stay away from companies with low inflation. they used to say tech, we have deflation because of globalization. tech 1.0 was amazon which made it very difficult for tv companies or others to pass on higher prices. that is not where you want to be. where you want to be is in the commodity producing companies which is copper and nickel producers. particularly when you can find

them doing it in a sustainable way. that is the holy grail. you get the higher commodity price in the following cost of capital because these companies are getting green bonds, grants from government they, are not at risk from the carbon tax and that is tremendous operating leverage. i could go sector by sector of the gems you could find. this is an opportunity -- to me it is as big an opportunity as the internet was if you can prepare your portfolio to monetize this impending inflation. amber: barbara ann bernard, thank you for your insight. we appreciate it. barbara ann bernard with wincrest. we will take a quick break. climate is one of the things you should be focusing on when it comes to bank earnings according to analyst mike mayo at wells fargo. he will explain his thinking as we weigh jp morgan numbers

tomorrow morning. we will be right back. ♪

♪ matt: this is "bloomberg markets " and i matt miller with amber kanwar. big banks reporting results. jp morgan, goldman sachs, bank of america a the names expected to release numbers. jp morgan and goldman sachs tomorrow, bank of america and citigroup thursday with morgan stanley. mike mayo is head of large bank research at wells fargo securities. previous quarters have been really driven by the trading activity, at least in terms of revenue growth. is that the same for q1 or do we see another leader? mike: we can summarize the quarter as the 5 c's.

one would be capital markets but with credit quality, return of capital, the yield curve and cost control. capital markets certainly are stronger for longer and we think the biggest earnings surprise will come from goldman sachs because they are in the sweet spot as the ultimate dealmaker. they ranked number one on deals for the last decade and post pandemic every industry in every geography has to rethink their business plans. it is a growth business when you are an advisor and you should certainly see that goldman sachs. the other big capital market players as well. amber: you have got capital markets, you've got a yield curve working in your favor, you've got economic growth that is poised to accelerate. how much of this do you think is already baked into the cake? when you look at the s&p 500

bank index it is already close to all-time highs. mike: it is all in the framing. since the start of last year banks have underperformed 515 percentage points. i think some of this -- 15 percentage points. i think some of these releases of credit reserves that banks are baked in. i think the next stage for the bank stocks are the benefits from the yield curve what you are not going to see yet. it is the expectation for loan growth with a more favorable yield curve and we will see what that means for traditional bank lending later this year. to some degree what the bank managements say will be more important that the results they show tomorrow and the next few days. matt: we saw stories over the last quarter about executives leaving big banks to work for a lot of consumers switching.

we have got coinbase starting to trade tomorrow at $100 billion valuation. are any of the big players seeing any material damage yet from fintech competition? mike: the depth of the large bank has been exaggerated. look no further than the 56 pages cl letter by jp morgan. -- ceo i jp morgan jamie dimon. some of the best fintech players are jp morgan and bank of america. zelle is twice the size of venmo and 20% of the volume is bank of america. when you talk about the largest banks they are pulling their weight. having said that there is a large under bank market. there is lots of pieces for many

players to gather and a lot to learn from these fintechs. you are going to see a survivor bias. the ones that make it are the big players. but i sense anger in the ceo letter by jamie dimon. we have 20th century financial industry regulation and the 21st century. banks comprise less than one third of the financing in the economy, yet the other two thirds don't have the same degree of oversight. amber: mike mayo, thank you for the set up. matt miller, i am amber kanwar, this is "bloomberg markets." ♪

♪ mark: i am mark crumpton with first word news. six u.s. women between 18 and 48

who received the johnson & johnson covid vaccine developed blood clots after similar issues with the astrazeneca shot. >> the real thing that is so notable here is not just the cerebral thrombosis. those things can occur. it is that they are occurring together that makes a pattern and that pattern is very similar to what was seen in europe with a another vaccine. mark: in the united states, nearly 7 million doses of the j&j single vaccine have been given. hundreds of companies are urging president biden to speed up action in reducing greenhouse gas emissions. microsoft, walmart, and apple are saying in a letter the future of the economy is threatened by climate change. last